In a 5-2 ruling, the Arkansas Supreme Court recently upheld a January decision by Pulaski County Circuit Judge Tim Fox that the Arkansas Racing Commission’s (ARC) award of the Pope County casino license to Legends Resort and Casino and Oklahoma-based Cherokee Nation Businesses violated Amendment 100 of the Arkansas Constitution.
The high court said the constitution states only a single entity can hold a casino license. Justices further stated Legends does not meet licensing requirements because the company has no prior casino gaming experience.
Writing the majority opinion, Arkansas Supreme Court Justice Cody Hiland said the language of Amendment 100 clearly defines “casino applicant” as “any individual, corporation, partnership, association, trust or other entity applying for a license to conduct casino gaming at a casino.
“It provides for one license to be awarded to one entity for one casino. ‘Casino applicant’ is singular, not plural. Nowhere in the text does it allow for joint or dual licensing to more than one applicant. The circuit court was correct in finding that the award of the Pope County casino license to both Legends and CNB violated amendment 100, making such action ultra vires. Because of these constitutional infirmities, the circuit court’s order declaring that the license issued is void is affirmed.”
Hiland wrote that the ARC issued the Pope County casino license to both Legends Resort and Casino and Cherokee Nation Businesses, although Cherokee Nation Businesses had no application pending with the commission.
As a result of the ruling, Trent Minner, administrator of the state Department of Finance and Administration’s Regulatory Division, which includes the ARC, said the department “will be working with the Arkansas Racing Commission to open a new application window in a timely manner” for the Pope County casino license.
“We will work with the commission to ensure all legal requirements of Amendment 100 are fulfilled and that the process is carried out in compliance with Arkansas law,” he said.
In May 2019, Cherokee Nation Businesses and Gulfside Casino Partnership were among the five initial applicants for the Pope County license. The gaming commission awarded a license in 2020 to Mississippi-based Gulfside.
However, in November 2021, the ARC nullified that license and instead granted the Pope County casino license to the Legends/Cherokee consortium, which had submitted an “amended application” with Cherokee Nation Businesses for “good cause shown” on May 7, 2020. Gulfside Casino filed a lawsuit and Fox voided the Legends/Cherokee license.
The commission’s action to award the Pope County casino license to the Legends/Cherokee group in November 2021 followed the state Supreme Court’s October 2021 reversal of Fox’s ruling that declared unconstitutional a commission rule and state law requiring letters of endorsement for casino licenses from local officials in office at the time the license application is submitted. Gulfside’s letter of support was signed by former Pope County Judge Jim Ed Gibson, just days before his term expired on December 31, 2018.
Gulfside attorney Casey Castleberry said, “We are ecstatic about the Supreme Court’s affirmation of Judge Fox’s ruling that Legends was not a qualified applicant for the Pope County casino license. Just as the Racing Commission selected our superior application in 2020 in a head-to-head with Legends, we look forward to demonstrating again to county leaders and residents how our proposed world-class resort will benefit them and the entire state.”
Cherokee Nation Businesses Chief Executive Officer Chuck Garrett stated, “We are disappointed by the decision handed down by the Arkansas Supreme Court. Having the express support of the incumbent county judge, many other local officials and the community, we remain committed to earning the privilege of being the operator of choice for a casino in Pope County.
“We will be ready to demonstrate our 30-plus years of experience in gaming and hospitality once the Arkansas Racing Commission and the Arkansas Attorney General’s office determines the next step in fulfilling Amendment 100. We have already purchased more than 325 acres in Russellville, and our building and design teams have done as much work as possible to ensure construction can commence quickly. We are fully committed to moving forward and working with local and state officials as we have been for the past five years to build Legends Resort & Casino and bring the much-needed economic growth the community and state deserves.”
Hans Stiritz, a spokesman for the anti-casino group Citizens for a Better Pope County, said, “We’re grateful that the Supreme Court affirmed Judge Fox’s decision and kept the previously issued license invalid. Pope County voters were never included in plans for a casino here, and we voted 61 percent against Amendment 100 in 2018. Moving forward, we will continue to advocate for the Pope County electorate to have the final say in the decision to have a casino here. Hopefully the Racing Commission will consider carefully before issuing a license in any future application periods, especially to CNB, who have spared no effort in keeping Pope County voters out of the process.”
Voters approved Amendment 100 in November 2018, authorizing the ARC to license four casinos. Currently, three are operating in Hot Springs, Pine Bluff and West Memphis. According to state data, players wagered $663 million at those casinos in September, resulting in $47 million in revenue for the Arkansas Scholarship Lottery.
